The verdict from industry and others on the SNPs plans for Food Price Caps:
The verdict from industry and others on the SNPs plans for Food Price Caps:
Since the 17th of April business groups, economists, politicians and Governments have all offered a view on the Scottish National Party’s Manifesto pledge to introduce statutory price caps. Below is a selection of comments (and links)
SRC:
Ewan MacDonald-Russell, Deputy Head, Scottish Retail Consortium: “Rather than recreating 1970s-style price controls and potty gimmicks, public policy should focus on cutting retailers' costs so that resources can be directed to keeping prices as low as possible for customers." : https://brc.org.uk/news-and-events/news/corporate-affairs/2026/ungated/src-reaction-to-snp-s-proposed-price-cap-on-food/
Andrew Opie, Director of Food and Sustainability, British Retail Consortium: “First, it is totally unnecessary. I spoke earlier about how we already have the lowest grocery prices in western Europe, so competition is working. “The point that you can drive some kind of intervention with some 1970s price controls is just a fallacy; it just does not work. “We will probably end up with producers losing out, or producers dropping out of the market, and people will not get the choice that they have at the moment. “Leave it to the market because the market works really well. All the independent assessments of the UK grocery market confirm that.” Evidence to the EFRA Committee
Luke McGarty, Head of Policy Scottish Grocers Federation: " “While the policy may be aimed at larger retailers, price caps on selected products will inevitably have knock-on effects for similar items sold in local stores. “Capped prices in supermarkets could encourage customers to travel further to out-of-town locations for staple goods typically purchased locally, reducing sustainability and creating a competitive disadvantage for small local businesses. “Local stores play a vital role in their communities, providing accessible, lifeline goods and services, supporting local employment, and enabling a local multiplier effect. All within walking distance of people’s homes. “At a time when local retailers are already under considerable pressure from additional costs added by government regulation and global issues, some may feel compelled to try and match supermarket prices, which could threaten both their viability and the benefits they provide.” https://www.sgfscot.co.uk/latest-news/sgf-response-to-snps-planned-supermarket-price-cap-on-staple-foods
Jonny Williams, Managing Director, Farmstock UK: “"Who's going to pay for it? Our members, Scottish farmers, are operating in a global marketplace. Farmers are facing rising costs and are under real pressure with higher labour costs, higher fuel costs, higher fertiliser costs and to balance the books." https://www.bbc.co.uk/news/articles/cx2r19v82z8o
David Thomson, Food and Drink Federation Scotland: “ "“This policy has the real risk of undermining investment, resilience and long‑term food security – crushing hard‑pressed food and drink producers who feed the nation and provide good, skilled jobs in communities across Scotland – many of them small and medium‑sized businesses. “Our sector is already facing intense pressure from rising regulatory and policy costs, alongside global economic challenges that are pushing up the cost of energy, ingredients and transport. Businesses have worked hard to absorb these pressures and keep prices as low as possible for shoppers, but there is no headroom left. We need clarity from the SNP on how this policy would operate in practice – who bears the cost, how supply chains are protected, and what safeguards exist to prevent challenges being pushed down the supply chain for Scottish producers if costs continue to rise. “If ministers are serious about helping households, they should focus on addressing the underlying drivers of food price inflation. This includes reducing avoidable regulatory costs and supporting a stable business environment that allows food and drink manufacturers to continue investing, innovating and employing people across Scotland." https://www.fdf.org.uk/fdf/news-media/press-releases/2026/fdf-scotland-response-to-snps-proposed-price-cap-on-food/
Andrew Connon, NFU Scotland President: “However, there is growing concern among our members about how such a policy would be implemented, and where the financial burden of any price intervention would ultimately fall. This is particularly important in the current context, where food prices in the UK are already among the lowest in Europe, driven by an intensely competitive retail sector. [ ] There is a clear and widespread concern that, without appropriate safeguards, primary producers could be expected to absorb the cost of maintaining capped retail prices – an outcome which would be fundamentally unworkable for Scotland’s farming and crofting businesses.” https://www.nfus.org.uk/userfiles/documents/NFU%20Scotland%20Letter%20-%2023%20April%202026.pdf
Business Groups
Prosper “Our members want the next Scottish Government to focus on practical actions which create economic confidence in these uncertain times. Tackling the cost of living and poverty are critical - but this proposal [statutory price caps] seems misdirected and raises so many questions - for farmers, manufacturers, shops of all sizes and consumers - that it’s extremely hard to see how it could feasibly operate.
We think that the next Scottish Government would be better working with employers to create a competitive tax and regulatory environment and expand employability services so that employers can continue to increase pay, create jobs and recruit people who are not in work. It should also work with the food industry in Scotland to encourage investment and innovation which will lower costs.” Via LinkedIn: https://www.linkedin.com/posts/prosper-scot_yesterday-was-one-of-those-fun-occasions-activity-7455595352923230209-HD3q?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAWQF74BUkpY57zHZPPFjpgZnYU_y0rw22k
Think Tanks
Stephen Boyd, IPPR Scotland Director: The chances of this policy making a tangible difference to household budgets over the next parliament are almost zero. Even if we assume that the next Scottish government has sufficient powers to enact the policy, it’s highly unlikely that the prices of everyday supermarket items can be reduced to an extent that makes a real difference to consumers. Making promises that can’t be kept is dangerous in the long run. Populism in all its guises is, in many ways, a response to the persistent failure of mainstream politicians to deliver on their manifesto commitments.’ (The Times, 27th April 2026)
David Phillips, head of devolved and local government finance at the Institute for Fiscal Studies: “Last, but certainly not least when it comes to the ‘cost of living’, the manifesto also pledges to establish statutory price ceilings on 20–50 essential food items, in order to prevent cost-of-living pressures from harming families’ nutrition. If these ceilings are set above market prices, the proposals could turn out to be toothless. But if these ceilings are below prevailing market prices, this proposal would be very radical and risky.
Unless there are specific anti-competitive reasons for elevated prices, ceilings could have the unintended consequence of creating shortages of these items, by causing demand to exceed supply. Indeed, suppliers or retailers could also deliberately restrict the availability of these items in Scotland. Products could also be reformulated to reduce production costs, which could adversely affect their quality.
Higher prices often reflect spikes in the costs faced by producers, so a price ceiling may cause some of them to stop producing. The manifesto indicates that a framework to support Scottish producers would be put in place, but it is unclear what form this would take. If it were financial support for producers when costs increased, then it would probably be more efficient for the government to redirect cash directly to households rather than to cap prices and support producers.” https://ifs.org.uk/articles/initial-response-snps-manifesto
Politicians
A Senior UK Government Source said: “This is an incoherent and undeliverable policy that risks costing the Scottish Government millions in legal bills. John Swinney has invented a policy more likely to put money in the pockets of lawyers than the pockets of working people. The UK Government is focused on taking immediate action on the cost of living – like cutting fuel bills now.” Statement provided on the day
Kemi Badenoch MP, UK Conservative Party Leader: “It isn’t legally possible. They are only doing it because they want to have a row with the UK Government about the constitution. They have run out of ideas and are scraping the bottom of the barrel looking for rows.” https://www.dailymail.com/news/article-15743207/SNPs-price-caps-food-not-legally-possible-says-Kemi-Starmer-trusted-block-them.html
Michael Marra, Scottish Labour: “It is both ignorant and arrogant for the SNP to shrug off the concerns of retailers, sector bosses, and local food producers about the risks of their food cap proposals. The SNP is well aware that this is not a solution to tackling the cost of living crisis. Instead of taking action to help those struggling to get by, John Swinney is instead focused on having a fight with the UK Government. It is an unworkable policy that will only put more money into the pockets of lawyers, rather than those of working people.” Scottish Labour Press Release
Former Rural Affairs Secretary, Fergus Ewing: “It’s a half-baked idea that is doomed from the start. Price controls have been tried and failed. Take my advice: scrap the cap. If you want to help the public, work with business, don’t order them about.” https://www.thescottishsun.co.uk/news/16194404/snp-minister-blasts-john-swinney-food-price-cap/
Scottish Conservative leader Russell Findlay: "John Swinney must know that his idiotic plan to dictate prices to supermarkets is unworkable nonsense. It would cripple small retailers, harm Scotland's farmers and would not reduce a single shopping bill. " https://fifeconservatives.uk/index.php/press-releases/1219-findlay-swinneys-idiotic-plan-for-food-price-caps-will-cripple-small-retailers
Alasdair Carmichael MP, Scottish Liberal Democrats and Chair of the EFRA Committee: “ The National Farmers’ Union Scotland have made their concerns clear both nationally and in the Northern Isles that even if it worked as intended, the cost of this price cap policy would fall on farmers, crofters and other primary food producers. It also risks undermining the viability of small country shops which are vital to our communities in the Northern Isles. Scottish Liberal Democrat Press Release
